Gate.io Users Have Lost 40,000 ETC due to 51% Attack

Gate.io Users Have Lost 40,000 ETC due to 51% Attack

On January 7, 2019, a 51% attack began in the Ethereum Classic network. In this regard, all exchanges (or at least most of them) have stopped transactions with ETC. Despite these preventive measures, it was not possible to avoid network interference. Today, Gate.io has reported that its users lost 40,000 ETC (about 220,000 US dollars). The exchange promises to reimburse all these funds as soon as the risks of theft of the cryptocurrency are minimized.

By the way, the risk of such an attack was recently in the Bitcoin Cash network.

Obviously, Gate.io wasn’t the only victim to the intruders. However, no other stock exchange reported its losses. Nevertheless, according to representatives of Coinbase, the total loss of the network amounted to 219,500 ETC coins worth over a million dollars. Moreover, research by the crypto giant has shown that the risks associated with an attack of 51% are still relevant. In this regard, it would be very interesting to hear messages from leading stock exchanges regarding the current situation.

It is unlikely that such an attack is connected with the forthcoming fork of Ethereum. Nevertheless, it could well become one of the reasons for the ETH price decline (and the market in general). Crypto newcomers could sell their ethers amidst negative news background.

It’s funny that in January 7-9, ETC price did not particularly fluctuate. This means that exchanges still managed to minimize the destructive effects of the attack.

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